EUR/USD posts another low of 1.2859 - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik points out that EUR/USD fell to a fresh low of 1.2859 at the beginning of the European session, in the light of the unfaltering demand for the greenback.

Key quotes

"As for the technical picture, the 4 hours chart for EUR/USD shows momentum has corrected extreme oversold readings holding below its midline, albeit RSI remains around 22, far from suggesting an upward correction."

"20 SMA on the other hand presents a strong bearish slope, now converging with recent intraday highs in the 1.2940/50 area, offering strong resistance in case of a recovery."

"Despite the extreme readings, there’s not much around suggesting the pair may regain some ground at the time being, as price needs at least to overcome the mentioned level to shrug off partially the bearish tone."

"In that case the upward correction can extend up to 1.3000 price zone."

"On the other hand, a break below mentioned daily low should see price extending down to 1.2810/20 area, where the pair presents several daily lows from May last year."

"If this last gives up, the path is quite clear all the way down to 1.2740 strong midterm static support."